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Presentation by :
CA. Sudha G. Bhushan
To be or not
to be..
Presentation on Non
resident Indians
By : CA. Sudha G. Bhushan
Definition
Regulators
Relevant definition
Deposits
Investment
Reserve Bank of India
Regulators
Regulators
Securities and
Exchange Board of
India
Foreign Investment
Implementation
authority
Person resident in
India
Section 2(v) of FEMA
Person resident outside India
personresident outside India means a
person who is not resident in India; [As per
FEMA Sec 2(w)]
A person (Individual) resident in
India
A person (being an individual) residing in India for more
than one hundred and eighty-two days during the course
of the preceding financial year but does not include
(A) A person who has gone out of India or who stays outside
India, in either case
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By : CA. Sudha G. Bhushan
Foreign Currency
Account
Rupee Account
By : CA. Sudha G. Bhushan
Rupee Account
Lending in Rupees
Permitted to NRIs/PIOs
PIOs who are not citizen of Bangladesh,
Pakistan or Sri Lanka
Firm should not undertake- Print Media,
Agricultural/ Plantation & dealing in land and
immovable property
Capital invested cannot be repatriated
Income can however be repatriated
Foreign Direct
Investment
FEMA 20/2000
Sectors/activities where FDI is prohibited.
Portfolio
Investment
Non repatriation
Basis
Repatriation
Basis
India
Foreign Direct Investment
Investment inCapital - equity, preference,
convertible preference, Convertible debentures.
Automatic Route
Government Approval Route
Investment on repatriation basis- sale proceeds net
of taxes eligible for repatriation out of India
CA Sudha G. Bhushan
FE(Transfer or issue of security by a
person resident outside
India)regulations, 2000
Schedule III Schedule IV
Purchase/sale of
shares and /or Purchase and sale of
convertible debentures Shares/convertible
by a NRI on a stock
exchange in India on debentures by a NRI
repatriation and/or on non repatriation
non repatriation basis
under portfolio basis
investment Scheme
Portfolio Investment by NRIs
Limit of 5% by single NRI, 10% by all NRIs (can be
increased to 24%) to be maintained
Payment to come from NRE/FCNR or NRO (in case
of non repatriable investment)
Delivery based purchase and sale permitted
OCBs are not permitted after 29/11/2001 to invest in
PIS
CA Sudha G. Bhushan
Schedule IV
by way of inward
The amount invested
remittance through
in shares or convertible
normal banking
debentures under this
channels or out of
Scheme and the
funds held in
capital appreciation
NRE/FCNR /NRO
thereon shall not be
account maintained
allowed to be
with an authorised
repatriated abroad.
dealer
Business of chit fund, or
ii) Nidhi company, or
iii) Agricultural or plantation activities, or
iv) Real estate business* or construction of farm
houses, or
v) Trading in Transferable Development Rights (TDRs).
CA Sudha G. Bhushan
THANKS..
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